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General description: Sporting goods manufacturing
State of formation:
This company just secured a major contract for its business. This new customer was in the top ten of the Fortune 500 companies and a major entity in the retail space. Unfortunately, the terms of the contract states that the customer would have 50 days to pay an invoice, which was unsustainable for our client who needed liquid capital to carry its operations in between orders,
United Capital Funding proposed its factoring services to alleviate the road rash associated with hyper growth. Factoring would provide the following benefits:
- Advance on the invoice amount (typically 80% of the invoice value)
- Comprehensive accounts receivable management and maintenance of payment recovery and outstanding invoices.
- Credit investigation of future customers
- Online reporting available through CADENCE
The company accepted the proposal and was approved for factoring with United Capital Funding.
We worked with our client to form a verification process structured around the terms presented by their new retail customer. Our client now uses its advances to fund new business and continue reliable operation of its business while reaping the benefits of securing a major retail customer.